By J. Bruce Richardson, CorridorRail.com; January 4, 2018
Politico Morning Transportation today reports the passing of the legendary Herb Kelleher, a co-founder of Southwest Airlines. Mr. Kelleher was 87.
What is notable in the passenger rail world about Mr. Kelleher is he was the ultimate disrupter in the legacy airline industry.
Because of the way he conducted business and his at-the-time unthinkable business model, and the way the traditional airline industry reacted to him, many historic airline names have disappeared into the airline history books.
Many ignored him, and hoped he would fail and his airline would go away.
Today, many fliers in many markets now served by Southwest are enjoying lower fares because of the successful Southwest business model.
In short, Mr. Kelleher disrupted the traditional business plans of the airline industry at the time, and those airlines who failed to understand what was happening, simply failed as going concerns and disappeared.
Much of the long term results of Mr. Kelleher and Southwest can be applied today to the latest disrupter, All Aboard Florida’s Brightline service in South Florida, soon-to-be rebranded as Virgin Trains USA.
Brightline/Virgin is bringing an entirely new business model to passenger rail, borrowing some of the best from the pre-Amtrak area, and selectively using proven ideas from passenger rail operators around the world, as well as a number of innovations of their own.
Just as many travel industry traditionalists scoffed at Mr. Kelleher and what was deemed at the time as wild ideas, traditionalists in the Amtrak era rail passenger world are scoffing at Brightline/Virgin Trains USA and loudly pronouncing in advance all of the reasons why they believe this new disrupter will fail, without any real facts, other than tired opinions.
Mr. Kelleher left his mark on the airline industry, and, indeed, the entire travel industry. Today’s disrupter, Brightline/Virgin Trains USA is destined to do the same.
